Project #38829 - Business Stat Discussion Question

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During this session, we study uses of correlation and regression analysis. While this technique can be very useful, it can also be misused. In regression, we use the correlation between an independent variable and a dependent variable to understand the significance of the relationship and predict how the dependent variable changes as the independent variable changes. Implicitly, there is a concept of changes in the independent variable "causing" changes in the dependent variable. However, correlation does not necessarily indicate causality and people sometimes misinterpret outcomes.

Please think of events that are correlated but causality may not be clear. Please share at least one example.